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CIPS Exam A6 Topic 2 Question 73 Discussion

Actual exam question for CIPS's A6 exam
Question #: 73
Topic #: 2
[All A6 Questions]

Which of the following is the most likely consequence of government decreasing interest rates? (2 marks)

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Suggested Answer: A

by Florinda at Mar 22, 2025, 09:29 AM

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Ciara
4 months ago
That's a good point, Thea. So maybe the answer is actually A) People spend more.
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Thea
4 months ago
But wouldn't people save more instead of spending, since they earn less on their savings?
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Nancey
5 months ago
I agree with Lakeesha, because lower interest rates make borrowing cheaper.
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Lakeesha
5 months ago
I think the answer is A) People spend more.
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Audry
5 months ago
Haha, the real question is, who actually reads the textbook? Just pick the one that sounds the most logical, and you're golden!
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Jesus
3 months ago
D) The cost of borrowing goes up
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Artie
3 months ago
Haha, who needs textbooks anyway?
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Helene
3 months ago
C) The economy slows down
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Francis
3 months ago
B) People spend less
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Ariel
4 months ago
A) People spend more
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Irma
5 months ago
I'm not entirely convinced. Couldn't lower interest rates also lead to the economy slowing down if it encourages too much borrowing and spending?
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Ligia
4 months ago
C) The economy slows down
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Glory
5 months ago
B) People spend less
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Lamar
5 months ago
A) People spend more
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Devon
5 months ago
I'm pretty sure the correct answer is A. When interest rates go down, borrowing becomes cheaper, so consumers and businesses are more likely to spend more.
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Malika
5 months ago
Well, duh! Lower interest rates mean people can borrow money more easily, so they're obviously going to spend more. It's basic economics, people!
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Alecia
4 months ago
C) The economy slows down
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Veronica
4 months ago
Exactly! Lower interest rates encourage people to spend more.
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Carlota
4 months ago
A) People spend more
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Noah
5 months ago
A) People spend more
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Corrina
5 months ago
B) People spend less
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Rebbecca
5 months ago
A) People spend more
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